Understanding Luxury Marketing

Luxury shopping

Luxury marketing requires a totally different approach when compared to other industries. Think about it—there’s a reason that there aren’t Prada and Porsche blog pages. When a consumer thinks of luxury brands, cost and quality are top of mind. Therefore, the marketing channels and strategy are distinct, and managing the brand’s reputation and recognition is crucial. But what’s interesting is that when marketing wealth products, the thought process behind luxury purchases and consumer behaviors is even more, if not the most, important thing to keep in mind.

Luxury purchasing is on the increase, Ipsos Affluent Intelligence’s latest research from Q4 2018 found, with nearly three-quarters of affluent consumers (73%) reporting having bought luxury goods in the past year — an increase of 9 points from 64% in Q4 2016. 

With affluent consumers indicating they anticipate spending more on luxury in the coming year (15% in Q4 2018, compared to just 9% in Q4 2016), successful marketers will need to understand both the rational and emotional elements driving their behavior. 

Read more here, on mediapost.com.

Sales and growth in the luxury market is concentrated in three categories: cars, experiences and luxury goods. The best wealth marketing efforts focus not just on people who can easily afford these products, but they include the individuals who are willing to save and splurge. If you can manage both mindsets, your luxury goods sales will certainly go up.

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